089 What is a Financial Responsibility Determination?

If you work in the Government acquisition world, this podcast is for you. (not just for Contracting Officers!)

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Government Contracting Officers are required to make a determination that a contractor is “responsible” before awarding a contract. Part of this determination requires a review of the contractor’s financial capability. (FAR 9.104(a))

Kevin and Paul discuss why it is important for Government Contracting Officers to carefully review their bidder’s financial capabilities (especially for small businesses) and be cognizant of when an acquisition strategy may encourage companies to bid above their weight class. (which introduces risk). Industry should also understand how the Government evaluates financial responsibility and how to be prepared to pass this test.

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Kevin Jans and Paul Schauer created the Contracting Officer Podcast to help Government and Industry acquisition professionals understand more about how the other side thinks. Admittedly, the podcast’s name sounds very limiting. It is not just for contracting officers or even just for those in the contracting profession. Anyone with an interest in the Federal acquisition world can benefit from the insight and down-to-earth explanations of complicated topics provided by the hosts.